IBM Software Business Partner Guide

1. September 2012 IBM Software Business Partner Guide

2. IBM Software Guide – Table of Contents How to Make Money Selling IBM Software IBM Strategy and the Software Opportunity Getting Started Software Value Propositions • Business Analytics • Collaboration Solutions (Lotus) • Industry Solutions • Information Management • Mobile Foundation • PureSystems • Rational • Security • Tivoli • WebSphere 3

3. Join the IBM Software Team TODAY and Increase Your Profit Potential • IBM Software Business Partners have higher overall satisfaction • Incentives for new licenses and renewals • Fee-free: no program enrollment fees 36% more gross profit per deal • 15:1 increased profitability due to IBM Software Value Plus Authorization • 9:1 increased revenue due to IBM Software Value Plus Authorization 36% • Up to $50K “You Pass, We Pay” course and test reimbursement for Premier Business Partners • Revenue from <$100K leads passed averages $1M Gross Profit from Middleware Deals • Rich IBM Software incentives reward Business Partners for value-add, influence and referral Source: 2009 IBM Software Business Partner Profitability Study, 2010 IBM Business Partner Diagnostics Survey, 2011 IBM SVP Program Assessment, competitor websites 4

4. Why Become an IBM Business Partner Why Invest and Grow with IBM Why Team with IBM Highly ratedcompensation packagefor maximum cash flow and return on investment (with additional rewards for mid-market focus and value-add) Exploit themarket pullof the industry’s largest and well recognized IT solution vendor for more business opportunity, with a comprehensive, technically advanced portfolio of infrastructure software Comprehensive technical resources, education and enablementto build expertise and minimize your cost via PartnerWorld, the no-cost Virtual Innovation Center, or advanced support via Techline. Improvecustomer responsivenesswith comprehensive, cost-effective accessible technical support with access to 24 hour multi-format technical resources and enjoy rewards through the IBM’s certification program Leverage IBM Software marketing resourcesquickly and easily with cost-effective, personalized campaigns and help from our expert agencies and Marketing Centers. Grow your IBM Software business with revenue multipliers judged highest in the industry by BPs. Enjoy significant up-sell/ cross-sell and annuity revenue opportunity, and leading financing options for competitive advantage. Become part of“Team IBM”to optimize effectiveness and exploit economies of scale with the aid of IBM resources to help optimize your participation in IBM offerings, share resources, skills, support, opportunities, and jointly develop joint go-to-market plans and tactics using the IBM award-winning PartnerWorld portal. IDC Partner Profitability 2011 Study Business Partners that sell IBM Software report: • The highest overall retained marginsfor the resell of their primary brands • The components of IBM's programs are greater accelerators to their business as compared to the total population. Source: IDC Multi-Client Study, Partner Profitability 2011: Changing Business Models and Requirements in the Evolving IT Channel Ecosystem 5

5. IBM Business Partners are vital to IBM’s business The IBM Business Partner Charter – guiding principles to work together • IBM Business Partners are vital to IBM’s business. • Our relationship is a collaboration of equals. • We strive to provide the industry’s best Business Partner experience in all respects. • We ground our relationships in the core values of IBMers • IBM Business Partners play a critical role in building a smarter planet. • Provide midsize companies with groundbreaking solutions that improve efficiency and accelerate ROI • Help smaller companies level the playing field, increasingly important in a world where ideas trump resources. 6

6. PartnerWorld Incentives for Software Business Partners IBM Software Business Partners have a wide range of profit opportunities including cross sell, influence, resell and bundled solution resell Cross Sell Resell and Influence Solutions Bundled Solutions Solution Accelerator Incentive (SAI) Software Value Plus (SVP) Industry and Capability Authorization Application Specific License (ASL) • Resell model for lightly embedded and bundled solution offerings • Business Partner owns client relationship, including the license agreement • Single point of contact – sales and support • Business Partner earns via discount on product sales for both initial sales and annual renewals • Global program for HW & SW resellers • Earn a Base Reward for selling IBM hardware and software together • Earn a Solution Bonus Reward for selling an IBM-defined solution • Claim is made through IBM SW VADs • Minimum revenue level (hw + sw) for a claim is $20K USD • Earnings opportunities from 15% to 30% • Global program for SW resellers / influencers: • Consistent requirements and benefits in all countries for Product Group authorizations • Incentives for resale and influence for all client opportunities • Software Value Incentive (SVI): Incentives for Business Partner opportunity identification and progression • Earnings opportunities from 5% to 50%+ • Recognition for expertise in providing client solutions, based on key IBM Software products • Industry: covers key Industries (Finance, Banking, Manufacturing…) • Capability: Security, Cloud, Social Business, Smarter Commerce, Business Analytics & other high growth solution areas • IBM Business Partner Mark • Earnings opportunity from 20% to 30% Source: IBM Software SVP, SVI, Value Advantage Plus (VAP), SAI and ASL Program Operations Guides on IBM PartnerWorld 7

7. How do I Make Money Selling IBM Software? IBM offers multiple programs to help you increase your Margin Business Partners can earn incentives ranging from 5% - 60% • SVI (Software Value Incentive) Rebates paid after the sale has closed • VAP (Value Advantage Plus) Business Partners combine services with the solution sale and get an instant discount from your Value Added Distributor (VAD) • General Business Instant Rebate Increase profitability with instant incentives paid by your VAD Facts: SVI/VAP participating Business Partners are 50% more likely to report high gross profit margins (>20%) on middleware deals than non-participants Source: 2009 IBM Software Business Partner Profitability Study 8

8. Supporting Business Partners with the Right Tools Business Partner Locator Tool Grow Your Business Tool Profitability Tool Web Content Syndication Ready to Execute Campaigns Co-Marketing Financing a Smarter Planet Midmarket Asset Gallery and Assessment Tool Getting Started with Social Media IBM Global Financing 9

9. Early Access Software Solution Training IBM Support Assistant Solution AssuranceTechnical and Delivery Assessment IBM Innovation Centers PartnerWorldSelling Resources IBM SWG Product Guide developerWorksResources for Developers PartnerWorld Value Package benefits IBM Industry Frameworks PartnerWorldTechnical Support Resources IBM PartnerWorld Communities Business Partner Innovation Centers PartnerWorld Software Value Plus IBM Software Acquisitions Technical Support to help you get to Market Fast! 10

10. Help Build Smarter Profits IBM Supports You and Your Business End-To-End “IBM’s Business Partner program is among the top few in the industry, if not the top program.” Darren Bibby, IDC Exceptional Profit Model for Business Partners Worldclass Enablement and Go-to-Market Support Industry Leading Products, Solutions and Services Leading Technology Training & Skill Building Demand Generation Technical Support New Revenue Streams Market Awareness $2B IBM Annual Channel Investment 11 Source: IBM Internal Reports

11. Why IBM? 2015 Roadmap for Growth Global IT industry leader serving clients and Business Partners for over 100 years Growth Markets –$234 billion opportunity Business Analytics –$168 billion opportunity Cloud –$196 billion opportunity Smarter Planet –$179 billion opportunity Let’s Build a Smarter Planet Together IBM Software is on-track to contribute as much as half of IBM’s profits by 2015 Source: IBM Market Insights , 2015 Total IT Opportunity, 1H12 This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. 12

12. IBM is Investing in Software and Growing… Business Know-how and Technology Innovation Accelerate the Journey 5,500+ High Value Software Business Partners 75,000 Business Partner Technical Certifications 25,000 Developers in 43 labs 11,000 Technical Professionals 25 Acquisitions Announced Since 2010 • #1 in middleware market share • Largest enterprise software company • Software revenue has nearly doubled and profit more than tripled since 2000 Source: IBM Annual Reports, Investor Day Briefings, and IBM PartnerWorld 13

13. A transformed software portfolio IBM meets clients’ business and IT needs by industry and role Industries Banking Energy Government Healthcare Education Transportation Retail Communi-cations Functions/roles Supply chain CSCO Executive CEO IT CIO Marketing CMO Finance CFO Human resources CHRO Business and IT needs Turn information into insights Deepen engagement with customers, partners and employees Deliver enterprise mobility Accelerate product and service innovation Manage risk, security and compliance Enable the agile business Optimize IT and business infrastructure

14. IBM Software market opportunity by business need 52% of the opportunity comes from two needs, while Enterprise Mobility spurs the highest growth 2012-15 2012 Total Market Opportunity $147B ($5B not captured with a capability) 2012-15 Relative Growth by Business Need Deliver Enterprise Mobility Deepen Engagement with Customers, Partners, and Employees Manage Risk, Security and Compliance Turn Information Into Insights Optimize IT and Business Infrastructure Enable the Agile Business Accelerate Product & Service Innovation Source: IBM Market Insights, 1H12 IBM Software Capabilities 05 02 12, FX Plan Rate This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. 15

15. IBM’s software portfolio is unmatched in the breadth and depth of it’s capabilities to solve business needs IBM Software serves 47 technology segments with 4500+ products IBM Software products roll up to a core set of 28capabilities that form the building blocks of solutions that address business needs Source: IBM Market Insights 16

16. Significant potential growth opportunities for IBM Business Partners aligned to client business needs Source: IBM Market Insights, 1H12 Capabilities 05 02 12, FX Plan Rate This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. 17

17. Common answers for diverse needs Seizenew marketplace opportunities on a smarter planet Smarter Analytics Cloud and IT Optimization Social Business Security Smarter Cities Product and Service Innovation Business Agility and Mobility Smarter Commerce IBM software helps you do it.

18. 2012 IBM Software Business Partner Strategy Reach Broader Markets IBM Software Capabilities Grow High Value Revenue Embrace New Business Models 19

19. Getting Started with IBM Five Steps to becoming an IBM Software Reselling Business Partner • Join PartnerWorld • Build your PartnerPlan for success • Sign up with a value added distributor (VAD) • Get your technical & sales training • Apply for the SVP or SVI and VAP incentives For more information go to ibm.com/partnerworld/software

20. Software Value Propositions • IBM Software brands and capabilities provide marketopportunityfor Business Partners who buildsolutionsusing our product portfolio to help themsell,buildreferencesand drive continuedsuccess… • Market Opportunity • Solution and Product Portfolio • Why Sell/Value Propositions • Partner References • Partner Profiles • Partner Resources 21